We receive many questions and will continue to add answers to this page. We’ve started with a common question we hear often, and check back for more answers soon.

Q: What are the relative advantages and disadvantages of the most common employee retirement plans?

A: The following is a quick summary of 5 popular plan types, along with advantages and disadvantages and a brief comment based on our experience…

Cash Compensation

Advantage: Recognizable / Instant Gratification
Disadvantage: Payroll Taxes & Costs / Sunk Costs

Tiger’s Eye Comments: No “Bang” for Employer Beyond Payday

Pension Plan

Advantage: Employer & Employee Tax Benefits / Employer control
Disadvantage: Employer Contribution Obligation
Tiger’s Eye Comments: Great Employee Security

Profit Sharing Plans

Advantage: Employer Contribution Flexibility
Disadvantage: Only Employer funded
Tiger’s Eye Comments: The Ultimate in Employer Flexibility


Advantage: Employee’s Subsidize Contribution Expense
Disadvantage: Additional Administrative Work and Costs
Tiger’s Eye Comments: Gets Employees Involved in their Retirement Planning

Non-Qualified Plans

Advantage: Total Employer discretion
Disadvantage: No Immediate Employer Tax Benefits
Tiger’s Eye Comments: ERISA “By-Pass” Plans